By Umesh Saba
The significant importance of going digital has led to the adoption of technology among Indian businesses. As customers move to online channels, digitization has become an integral part of the new normal, resulting in changes in how financial records are kept and maintained. Accounting, one of the most important parts of running a business, has also been transformed into a truly technology-enabled system. The widespread adoption of technology-driven accounting software has moved the business toward automation and artificial intelligence. Tasks that used to take months can be done in minutes, all with the click of a button. This proved to be a significant change in the business finance and accounting sector.
Eliminate device dependency
Traditionally, a business accounting team was surrounded by countless bank statements and numerous financial records. This required a large physical space with a large closet to store hard copies of financial records. However, the integration of technology has changed this practice to computer systems for recording accounting information. The short space of digital applications gave access to only a limited number of users, limited to accessing information on the desktop.
With the introduction of new technologies – cloud storage, accountants can ensure the storage of financial records with greater flexibility. It eliminates the risk of unauthorized users peeking into the desktop, reducing the risk of losing important data. All information can be stored in one digital application that does not allow you to be in the office to misplace files or access the desktop for specific information.
Cloud storage and new age accounting platforms allow secure storage of all records and having them in the palm of your hand anytime and anywhere. Many businesses have implemented cloud-based accounting systems to integrate data into actionable insights for improved business performance.
Data analysis
Businesses always involve manual visualization of financial data for important business decisions. However, the practice is prone to human error, delayed results, making it difficult for organizations to take timely decisions. Additionally, this has brought great clutter with great opportunities to access resources and information to disrupt the operations.
A new age accounting software with integrated data analysis to accurately measure and visualize a company’s financial records. This gives accountants a deeper and broader understanding of financial information that meets their needs. Create value with accurate forecasts, data analytics and accelerate business growth with accurate audits.
Simply put, accountants can track data on selected metrics in real-time, rather than having to access them weekly, monthly, and annually. With the power of data analytics, accountants can accurately process large amounts of data in a short amount of time and conduct risk analysis for better business performance.
Automatic accounting operations
No business sector or function is immune to the impact of automation. Eliminating the traditionally manual process of recording financial information gives accountants a more streamlined process to perform their duties accurately and efficiently. Even if they run a business, the owners and other executives have to do the accounting manually which is very time consuming.
Having said that, accounting software has more aspects to consider. Accountants can efficiently handle finances, including tax preparation, while keeping their business afloat. Instead of spending time managing day-to-day accounting tasks, finance teams can focus on other productive activities and see sales.
Additionally, traditional accounting has evolved from an error-prone to an automated, highly accurate function. By eliminating the role of humans to a large extent, the chances of entering wrong information can be avoided. Additionally, errors that once took hours to detect can now be detected in seconds, saving finance teams significant amounts of time and financial resources.
Ease of account compliance
Managing compliance is a stressful activity for finance teams. With economic uncertainty, regulations and laws are evolving at an unprecedented rate, making it difficult for accountants to ensure their accounts run smoothly without compromising accuracy and precision. However, in today’s dynamic world it is extremely challenging to maintain accuracy and be 100% compliant.
New age accounting software ensures accuracy in financial reports as well as compliance management. Facilitates reliable and timely reporting of compliance practices. This gives greater comfort to accountants and business organizations by complying with every law and regulation to conduct business in an ethical manner. This increases transparency and oversight across all finance team members.
at last
Technology has enhanced the financial performance of businesses by recording transactions that are hassle-free and less tedious. As manual and error-prone tasks are eliminated, new technologies are taking over the responsibility of accounting operations. It is inevitable to change the usual accounting operations by creating ways for more accuracy and efficiency.
(Oumesh Sauba is the founder of Nubuck.. The views expressed are those of the author.)
